me regularly. The first time I used cocaine was when Nick shoved a tiny spoon up my nose
because I was falling asleep, while he was talking to me. I had been up all night with him. Othei
times, he would hand me a pill of ecstasy and demand that I take it. I didn't really feel like I had
a choice. There were several times when he severely reprimanded and yelled at for not having
enough drugs on hand for him too. He would order me or others to get more.
24. Nick's party lifestyle definitely took its toll on him too; and, it affected his work
and marriage. Nick regularly ordered me to lie about his whereabouts on numerous occasions.
Rather than be at work or with his family, he was spending more and more time partying with his
stable of women. More and more of my job became dedicated to dealing with his personal
matters instead of business and work I was hired to do. Catering to his personal affairs and drug
induced conduct made my job more intolerable and consumed inordinate amounts of time. My
"responsibilities" increasingly became concealing and covering up for Nick, while being forced
most times to party with him.
25. At times when I was required to stay at Nick's home, in the guest bedroom, he
would wake me up, and make me drink and do drugs with him, because that was one of his
favorite things to do. Over time, I got sucked into his extreme lifestyle. For example, it became
a normal routine to watch the sunrise while being surrounded by drugs and women, and then
having to conceal it from the rest of Dr. Nicholas' employees and his wife. It was very difficult,
stressful, and unhealthy for me, but he demanded that of me regularly.
26. I had thought of quitting many times but my loyalty to him was important and I
know he did not have many others to rely on at the time. Nick also made it virtually impossible
to leave him too, there was an unspoken rule of absolute loyalty to him "or else." So, I really
hoped that he would be able to repair his marriage or get over his other problems. Nick is a great
DECLARATION OF KENJI KATO - KATO - 8Page 9
28
man, except for his personal excesses. But, he could not amend his ways while I worked for
him. His sexual cravings and drugs overpowered his life, and sometime in 2004, this became
apparent to his wife.
27. As divorce proceedings loomed, Nick's behavior became more erratic and
negative. His drug use increased. He hired a regular prostitute, Denise Boudreau, to work as his
assistant — and, I have seen her supply him with black tar heroin, speed, GHB, cocaine, and other
drugs.
28. I was required to help train her to be Nick's assistant. But, she was clearly not
qualified for the position due to limited education, and our mutual dislike for each other. She
began to create a rift between Nick and I. She competed with everyone for his attention and she
wanted to be the one that he relied on for everything.
29. The drugs and sex that she supplied made him extremely difficult to deal with.
He began staying awake for even longer periods, sometimes four to five days at a time. His
behavior became completely intolerable at times. He would yell and scream at everybody, no
one was immune to his rage. His lifestyle became very messy, his mansion was cluttered with
equipment, cardboard boxes, and junk, which we were not allowed to clean up on a regular basis.
30. Nick demanded things to be left where they were, which eventually became
unsanitary and unhealthful. For instance, there was mold in the basement of the Telescope
House, and clutter on the floor that made it difficult to move around the house. My staff and I
were required work in that unhealthy, dangerous, and hostile environment. The mansion was
literally full of clutter and there was very little open space in order to move about (the floors
were covered with boxes of equipment and books, even in the hallways). I was often required to
work on my bed, since there was stuff everywhere else.
DECLARATION OF KENJI KATO - KATOPage 10
31. Even though I was able to hire on a staff to assist me with providing 24-hour
assistance, seven days a week, I began to question my job safety and security. Nick was
constantly on drugs, and his behavior was more erratic than ever. He could not remember things
well, he became regularly confused, and would not make sense sometimes.
32. During that time, Craig Günther or 1 had to answer on his behalf quite frequently
because he no longer answered his phone regularly. My staff and I would have to try and
physically catch him when we could to sign paperwork and to relay messages. There were
several employees that were physical struck, shoved, grabbed, and generally assaulted by Nick
over relatively minor issues. For example, Jack Komonee, Alex Barajias, Scott Kato, David
Elvenia, and myself were separately attacked by Nick. I personally had a cell phone thrown at
me, and in one incident Nick shot me with an air gun, among other times he shoved me and such.
Nick also carried knives with him all the time. He even had a several large swords around the
house and he played and acted out with. On one occasion, he swung a sword very close to me,
intending to show me how it was done, but it was also very intimidating/terrifying.
33. Towards the end of 2004, he decided to create a media company called Level 7. I
was the first person to come onboard and help him develop this company. Our objective with
this was to help some of our musician friends make records and distribute them under a cutting
edge, technology oriented business model. We built recording studios, and hired musicians to
record music and create content for Level 7. I assisted with artist management, accounting, and
business development. As a start-up company, there was many holes to fill, I was ordered to
handle virtually all aspects of the business, however I was still responsible for my other duties of
supervising Nick's personal needs and properties.
DECLARATION OF KENJI KATO - KATO - 10Page 11
34. Unfortunately, Nick's pain, suffering, and drug abuse were extreme, and it was
difficult to discuss and handle business matters with him. He would routinely miss meetings, not
return calls, and blow off important issues or business matters. It was increasingly difficult to be
associated with an endeavor, Level 7, that was headed by a person, Nick, who would rather
always party than work.
35. At times, Nick could not remember what he ordered me to do the day before. I
was often challenged because his thought processes were impeded by his constant drug abuse.
He also regularly took prescription painkillers, such as Vicodin, Vicophrophen, and Valium. In
addition, 1 saw that he was still using large quantities of cocaine, crystal methamphetamine,
GHB, and heroin.
36. It was very sad to see him like this, the Nick that I first met was much stronger
and healthier than the person I ultimately came to work for. He regularly stayed in his bedroom
with his girlfriend, and rarely had people over. He no longer socialized with friends, or saw
much of his family. He even avoided me as much as possible, I'm not sure exactly why either.
37. I assumed it was out of shame or guilt. I believe that much of his negativity was
generated so that he would not have to deal with his many day to day problems. It was difficult
just to get him to sign important documents, which was one of my duties. Months before I left,
he became very reclusive, locked in his bedroom or office and only confided with the sordid
women in his life. As an employee and friend, I felt I had a duty to protect him, as I did over the
years, from people who would try and take advantage of his wealth and power. But during this
time, I could not help him — he wouldn't not let anyone. Drugs and sex were all he wanted, and
I could not be involved in that anymore.
DECLARATION OF KENJI KATO - KATO - 11 -Page 12
38. As he became more detached, even from his family and other employees, my
duties became more burdensome. I was working more than double full-time, yet he claimed to
keep me as an "independent contractor." Even though I was under his direct supervision and
specific instruction for about seven years, he withheld all benefits and overtime pay from me. In
the past, while at Broadcom, Nick regularly promised me benefits and stock options. He said he
would "take care of me," and that "I had a job for life," or other words incentivize me and others.
39. I felt obligated to work on weekends and holidays at his demand, while Nick still
owed amounts over-due and unpaid totaling $150,000.00 by March 2006. Those amounts were
for past wages and work representing about 1500 man hours of work, as well as expenses
advanced. The whole circumstance, on top of Nick's increasingly abusive and intolerable
conduct, and overdue money owed to me, everything ultimately led to me walking off the job on
about April 2006.
40. I regularly had heated arguments with Nick over his condition and behavior, and
our relationship soured severely. He stopped paying me my hourly wage regularly, but he still
demanded that I work for him. When I tried to get my invoices and pay approved, he resisted
and would refuse discuss the matter. To the end, he began avoiding me as much as possible
which caused an extreme amount of stress in my life. He made it impossible for me to do my job
for him and Level 7. I started feeling chest pains and having trouble sleeping. I began realizing
that I could no longer work for Nick, and that I had to quit.
41. Nick acknowledged to others that he owed me money, but he would not pay up
and disregarded the consequences of the financial pressures he caused me. He often used his
"purse strings" to try to control me. I could no longer live with that manipulation.
DECLARATION OF KENJI KAÏO - KATO - 12Page 13
42. After I left, in about April 2006, Nick falsely told others that he had fired me and
that I was a bad employee. Months after I left, on about October 2006,1 was informed and
believe that, Nick even went so far to claim that I had stolen (embezzled) money from him,
which was not true. I did in fact quit and was not fired, and through it all I was loyal and honest
to Nick, and I was deeply hurt by his remarks.
43. I have been also under the treatment of a psychiatrist, David Glaser, M.D., for
personal and emotional issues arising from working for Nick.
I declare under penalty of perjury of the State of California that the foregoing is true and
correct to the best of my knowledge. Executed at ¿-¿¿> <tu(,i^£i, , California, on March ¿L, 2007
KenjtKato - Declarant